Immigration and the Cash Economy

Putting the “executive action” debate aside, immigration reform should focus on tax collection. Let’s take an honest look at how undocumented immigrants escape the tax collector. It’s no wonder the majority of undocumented immigrants live in California. This beautiful state is semi-affordable if you do not have to pay taxes.

Certain sectors of the economy thrive on cash transactions. Mostly vice, but construction and retail are the main culprits. The accountant in me sees the accounts receivable entry on our national (and state) ledger grow every day we sit idle. And like any good business person, every few years or so it becomes time to collect.

Bringing ten million people onto the tax role is a good thing. Making sure they pony-up and pay their share of back taxes is even better. If you are lucky enough to call the Unites States home, you are also fortunate enough to render unto Uncle Sam the money that is Uncle Sam’s.

If we are to have an honest debate on immigration then we should focus on the most effective way to ensure undocumented immigrants pay taxes. In doing we can cut taxes across the board because more folks will be paying into the socially engineered system. We millennials don’t care about where the undocumented immigrants came from. We are more interested in financial and tax integration.